Colwell & Co., et al.
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Title 16— Commercial Practices CHAPTER I— FEDERAL TRADE COMMISSION [Docket C—2768] PART 13— PROHIBITED TRADE PRAC TICES, AND AFFIRMATIVE CORREC TIVE ACTIONS Colwell & Co., et al.
Subpart—Advertising falsely or mis leadingly:
§ 13.73 Formal regulatory and statutory requirements; 13.73-92 Truth in Lending Act; § 13.155 Prices; 13.155-95 Terms and conditions; 13.- 155-95 (a) Truth in Lending Act. Sub part—Misrepresenting oneself and goods—Prices: § 13.1823 Terms and con ditions; 13.1823-20 Truth in Lending Act. Subpart—Neglecting, unfairly or deceptively, to make material disclosure: § 13.1852 Formal regulatory and statu tory requirements; 13.1852-75 Truth in Lending Act; § 13.1905 Terms and con ditions; 13.1905-60 Truth in Lending Act.
(Sec. 6, 38 Stat. 721; 15 U.S.C. 46. Interpret or apply sec. 5, 38 Stat. 719, as amended; 82 Stat. 146, 147; 15 U.S.C. 45, 1601, et seq.) In the Matter of Colwell & Co., a Corpo ration, and Thomas F. Colwell and Phillip F. Foster, Individually and as Directors of Said Corporation Consent order requiring a Denver, Colo., real estate company, among other things to cease violating the Truth in Lending Act by failing to disclose to con sumers, in connection with the extension of consumer credit, such information as required by Regulation Z of the said Act. The order to cease and desist, includ ing further order requiring report of compliance therewith, is as follows: 1 O rder It is ordered, That respondents Col well & Co., a corporation, its successors and assigns, its officers, and Thomas F. Colwell and Phillip F. Foster, individu ally and as directors of said corporation, and respondents’ agents, representatives, salesmen and employees, directly or through any corporation, subsidiary, di vision or other device, in connection with any advertisement to aid, promote or as sist, directly or indirectly, any arrange ment or extension of consumer credit as “consumer credit” and “advertise ment” are defined in Regulation Z (12 CFR Part 226) of the Truth in Lending Act (Pub. L. 90-321, 15 U.S.C. 1601 et seq.), do forthwith cease and desist from: 1. Representing in any such advertise ment, directly or by implication, that no downpayment is required, the amount of the downpayment or the amount of any instalment payment, either in dollars or as a percentage, the dollar amount of any finance charge, the number of in stalments or the period of repayment, or that there is no charge for credit, unless all of the following items are clearly and conspicuously stated, in terminology pre scribed under § 226.8 of Regulation Z, as required by § 226.10(d) (2) of Regula tion Z:
(a) The cash price; [the amount of the loan; 1 (b) The amount of the downpayment required or that no downpayment is re quired, as applicable;
(c) The number, amount and due dates or period of payments scheduled to repay the indebtedness if the credit is ex tended; and (d) The amount of the finance charge expressed as an annual percentage rate. 2. Stating in any advertisement the rate of a finance charge unless said rate 1 Copies of the Complaint, Decision and Order, filed with the original document. FEDERAL REGISTER, V O l. 41, NO. 12— MONDAY, JANUARY 19, 1976
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is expressed as an annual percentage rate, using the term “annual percentage rate”, as “finance charge” and “annual percentage rated” are defined in § 226.2 and as required by § 226.10(d) (1) of Regulation Z.
3.
Failing, in any advertisement, to make all disclosures as required by § 226.10 in the manner prescribed by §§ 226.6, 226.8 and 226.10 of Regulation Z.
It is further ordered, That respondents notify the Commission at least thirty (30) days prior to any proposed change in any corporate respondent such as dis solution, assignment or sale resulting in the emergence of a successor corpora tion, the creation or dissolution of sub sidiaries or any other change in the corporation which may affect compli ance obligations arising out of the order. It is further ordered, That the individ ual respondents named herein promptly notify the Commission of the discon tinuance of their present business or employment and of their affiliation with a new business or employment. Such no tice shall include respondents’ current business address and a statement as to the nature of the business or employment in which they are engaged as well as a description of their duties and respon sibilities.
It is further ordered, That the re spondent corporation shall forthwith distribute a copy of this order to each of its operating divisions. It is further ordered, That the re spondents herein shall within sixty (60) days after service upon them of this or der, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order. The Decision and Order was issued by the Commission Dec. 15, 1975. V irginia M . H arding, Acting Secretary.
[PR Doc.76-1436 Piled l-16-76;8:45 am]